Addressing ROI in IoT

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The Internet of Things (IoT) has been described as the next multi-trillion-dollar opportunity and the solution to many business problems. McKinsey Global Institute predicts that the potential economic impact of IoT will be $4 trillion to $11 trillion a year by 2025.

IoT may promise transformative opportunities across your business, yet determining whether or not to get started is often a challenge. The many solution components and considerations make it difficult to know how IoT can add value to a specific business scenario. And unlike many mature trends, there is little guidance about evaluating potential return on investment (ROI) for IoT.

In this ebook, Microsoft offers a simplified approach for determining the ROI of an IoT investment, using an example of a firm implementing a remote monitoring solution. It starts with defining a business objective and comparing basic implementation costs to potential long-term savings. It then outlines other considerations, such as evaluating the less obvious costs and unexpected benefits of an IoT solution.

This ebook also recommends a practical approach to implementing an IoT solution. By building in phases, you can minimise the risk of deploying an end-to-end solution. Starting small also helps you adjust and refine your solution in a manageable way. Once the initial deployment is running smoothly, you can scale out to the rest of the scenario. As you continue to fine-tune the solution, you can evaluate adding new business processes and scenarios to extend the benefits of IoT across your business

The far-reaching nature of IoT technology requires a new way of thinking about implementation. Unlike traditional IT solutions, which primarily affect the technology in your business, IoT solutions can fundamentally improve core business processes. This ebook examines some of the main reasons why they can be so transformative.


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